Solvay Reports Resilient Q1 2025 Amid Challenges

Solvay Sa Adr ( (SLVYY) ) has released its Q1 earnings. Here is a breakdown of the information Solvay Sa Adr presented to its investors.

Solvay is a leading chemical company known for its innovative solutions in the chemical sector, focusing on sustainability and a carbon-neutral future. In the first quarter of 2025, Solvay reported a resilient performance despite a challenging macro-environment, with underlying net sales of €1,122 million, a decrease of 5.8% organically compared to the previous year. The company faced softness in its Soda Ash segment but maintained stability in other areas, supported by cost savings and a one-off gain from a patent dispute.

The company’s underlying EBITDA was €250 million, reflecting a 5.7% organic decrease year-on-year, with a margin of 22.3%. Solvay achieved €27 million in structural cost savings in the quarter, contributing to cumulative savings of €137 million since 2024. Free cash flow amounted to €42 million, and the underlying net profit from continuing operations was €102 million, down from €119 million in Q1 2024.

Solvay’s Basic Chemicals segment saw a decline in sales, particularly in Soda Ash & Derivatives, while Performance Chemicals experienced a positive EBITDA growth due to favorable pricing and a one-off gain. The company’s net financial debt increased to €1.7 billion, with a leverage ratio of 1.7x, influenced by interim dividend payments and investments in biomass boilers.

Looking ahead, Solvay remains confident in its ability to navigate the uncertain market environment, focusing on accelerating transformation and disciplined spending. The company expects stable sales in the second quarter and confirms its 2025 guidance, aiming for an underlying EBITDA in the lower half of the €1.0 billion to €1.1 billion range and free cash flow of around €300 million.